Ethereum’s Q1 Revenue Surges 155% YoY, Reaching $365 Million

Ethereum Achieves Impressive Revenue of $365 Million in Q1, Surging by 155% YoY


Ruholamin Haqshanas
Last updated:
April 19, 2024 01:16 EDT
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2 min read


In the first quarter of 2024, the Ethereum network generated a strong income of $365 million, experiencing a remarkable year-on-year revenue growth of 155%.
According to a report by Michael Nadeau, an analyst at The DeFi Report, Ethereum’s Q1 income represents a staggering 200% increase compared to the $123 million profit recorded in Q4 2023.
One of the main factors contributing to this substantial growth was the surge in decentralized finance (DeFi) activity during the quarter, which led to increased network participation.
Ethereum’s Fee Revenue Reaches $1.17B in Q1
Ethereum’s fee revenue, generated through user transactions, reached a noteworthy milestone of $1.17 billion in Q1, marking an impressive 155% increase from the same period in 2023 and an 80% upswing from the previous quarter.
The heightened network activity, fueled by the surge in DeFi applications, has resulted in Ethereum’s average daily transactions in 2024 surpassing last year’s figures.
The current average of 1.15 million daily transactions is close to the peak levels witnessed during Ethereum’s significant run in 2021.
It is important to note that Ethereum, launched in 2015, achieved its first profitable year in 2023, accumulating $623 million in revenue.
Although the revenues are significantly lower (75%) than the peak of $9.9 billion achieved in 2021, this accomplishment can be attributed to the transition to a proof-of-stake consensus in September 2022, leading to a substantial decrease in token incentives paid to miners, now referred to as validators.
Cryptocurrencies Expected to Outperform Other Assets
Nadeau believes that “crypto will outperform everything else” in the coming years.
He foresees favorable liquidity conditions in the next few years, driven by the need to refinance a significant amount of debt in the United States and the market’s expectation of three rate cuts from the Federal Reserve.
These factors are expected to provide support for risk assets like tech stocks and high-quality cryptocurrencies.
Nadeau identified three additional catalysts that indicate a bullish setup for the crypto market.
Firstly, the introduction of U.S. spot Bitcoin exchange-traded funds (ETFs) is anticipated to increase interest and accessibility to cryptocurrencies.
Secondly, the upcoming Bitcoin halving, scheduled for April 20, has historically triggered a bull run in the following year.
Lastly, Nadeau highlighted the ongoing innovation cycle, which he believes will attract new venture funding and reignite retail interest in crypto as the industry matures.
While Bitcoin typically outperforms in the early stages of a bull market due to its widespread recognition, Nadeau noted that Ethereum and altcoins tend to outperform Bitcoin in the later stages of the cycle.
Altcoins, which have a clear product market fit, have demonstrated significant growth in previous cycles, surpassing Bitcoin’s performance throughout the entire duration.
Meanwhile, the Ethereum network has surpassed one million validators, with approximately 32 million Ether, worth around $114 billion, staked within the network.
As reported, data from the Dune Analytics dashboard, which tracks Ethereum staking progress, show that the validator count reached the one million mark on March 28.
The 32 million ETH staked represents approximately 26% of the total supply, highlighting the substantial commitment to Ethereum’s proof-of-stake (PoS) consensus mechanism.
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